Government unleashes next generation of construction workers to build 1.5m homes

Ahead of the Spring Statement next week (Wednesday 26 March) the Chancellor has announced £600 million worth of investment to train up to 60,000 more skilled construction workers.

This will deliver well paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament. 

Chancellor Rachel Reeves said:

"We are determined to get Britain building again, that's why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure.

“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We've overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”

The sector is facing significant shortages, the latest Office for National Statistics figures show that there are over 35,000 job vacancies and employers report that over half of vacancies can't be filled due to a lack of required skills – the highest rate of any sector. Demand is expected to increase further to deliver the homes and infrastructure that this country needs.

Funding and reforms announced today will pay for more training places, ensure a sustainable flow of skilled construction workers and help businesses invest more in training. It will encourage the men and women who have spent decades working on building sites, to pass on their skills to the next generation of construction workers.

Building the skilled workforce of the future is key to driving economic growth, the central mission of the Government's Plan for Change. These construction jobs are the type of secure, well paid, in demand jobs that will help put more money in working people's pockets and fuel growth.

Education Secretary, Bridget Phillipson, said:

“Skills are crucial to this government's mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry.

“We are being held back by the largescale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission.

“These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”

Today's announcement will provide £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses.

Skills Bootcamps in the construction sector will also be expanded, with £100 million of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so. All Local Skills Improvement Plan (LSIP) areas will benefit from £20 million to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, sharing their vital expertise by training the next generation of workers.

Construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40 million, which will be launching in August 2025. This will inspire more young people into the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career. As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth and Skills Levy.

A further £100 million of Government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships. This will help get learners ‘site-ready' and address the ‘leaky pipeline' of learners who don't progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.

To ensure employers are able to work collaboratively to secure the workforce needed to meet future demand, the Government will sponsor a new Construction Skills Mission Board. Co-chaired by Government and by Mark Reynolds, Executive Chair of Mace, the Board will be empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.

The government's communications campaigns continue to promote skills and their contribution to opportunity and growth for individuals and employers.

In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry's value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction. 

The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors, and new shorter apprenticeships. Changes to end point assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.

Last year the Education Secretary announced new Construction Skills Hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government's homebuilding drive.

Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership said: 

“This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament and its ambitious plans for infrastructure delivery. It's a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.

“Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government's growth mission and match their ambition.”

Tim Balcon, CITB (Construction Industry Training Board) Chief Executive, said:   

“We are delighted with the support the Government is giving the construction sector with increased investment. This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5 new homes for people that desperately need them.   

As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”